Unemployment numbers bumped up a little in June

Jul 21, 2010 — Kokomo Tribune

Daniel Human

Jul. 20, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- KOKOMO -- The number of unemployed members of the work force increased for the third straight month in June in the Kokomo area.

The Indiana Department of Workforce Development on Tuesday released last month's employment numbers, which showed a jobless rating of 14.2 percent for the city and 12.7 percent for the county. A total of 4,406 people were out of work in Howard County.

June's unemployment rate is a slight increase from May, which had 13.8 percent unemployment for Kokomo and 12.3 percent for Howard County.

Local unemployment rates have remained above the state's average of 10.1 percent.

The state attributed the unemployment increase to fewer temporary and seasonal jobs.

The increase came as a surprise for the county's head of economic development.

Jeb Conrad, president and CEO of the Greater Kokomo Economic Development Alliance, said a series of business announcements about major investments and job growth led him to expect the county's unemployment would have remained the same or improved slightly.

"It's not a huge number. I understand that," Conrad said about the increase. "But at the same time, I'm kind of surprised. I think everybody's been anticipating some improvement."

Ongoing expansions at Kokomo's two largest employers, Chrysler Group LLC and Delphi Automotive Systems LLP, as well as the development of technology start-up firm Zuna Infotech have brought a few jobs to the area, he said.

Job growth should progress more significantly during the second half of 2010, he said.

Chrysler has recalled several hundred of its workers, and it is amid hiring 300 more by September, said Rich Boruff, president of United Auto Workers Local 685. The company had already recalled all of its laid-off workers in Kokomo, he said.

The company in June also announced it is investing $300 million and retaining 1,200 jobs at its Kokomo plants, which will produce more fuel-efficient, eight-speed transmissions.

After receiving an $89.3 million stimulus grant last year, Delphi throughout June moved forward at a new facility on 200 North where it will make parts for electric vehicles.

Linda Ferries, a spokeswoman for Delphi Electronics and Safety in Kokomo, said the company had hired or retained 60 jobs so far. The expansion will retain a total of 72 jobs and create 118 over the next few years.

Zuna so far has hired 10 people and plans to hire 40 more by the end of the year, Conrad said.

And although it could be a while until Colorado-based Abound Solar Inc. begins filling the 850 new positions it says it will bring when it moves to Tipton County, those jobs and indirect work for contractors and suppliers are something to look forward to, he said.

President Barack Obama and Abound announced earlier this month that the company plans to use a $400 million guaranteed loan from the U.S. Department of Energy to expand its business in Colorado and then into the empty 800,000-square-foot former Getrag Corporate Group plant in Tipton County.

"Eventually, Abound will have an impact on our suppliers and contractors," Conrad said. "That should put them in better position and create some jobs for them."

While Kokomo and Howard County's upward skip of .4 percentage points in unemployment in June was a little disappointing, Conrad said, it is a vast improvement compared to June 2009.

This time last year, the Kokomo area saw its worst unemployment rate -- more than 20 percent in the city and county -- so far since the recession began in 2008.

"If numbers go up 2 or 3 percent, you go 'OK, what's going?' Anything less than 1 percent is marginal," Conrad said. "It's great to be in a much better position than we were a year ago."

--Daniel Human is the Kokomo Tribune business reporter. He can be reached at 765-454-8570 or at daniel.human@kokomotribune.com.

Newstex ID: KRTB-0280-47145205